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Chinese multinationals’ fast internationalization: Financial performance advantage in one region, disadvantage in another

  • Heechun KimEmail author
  • Jie Wu
  • Douglas A. Schuler
  • Robert E. Hoskisson
Article
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Abstract

Our study reveals the financial performance implications of the speed at which Chinese multinational enterprises (CMNEs) expand into intra-regional versus inter-regional host countries. In doing so, we propose a framework that integrates internationalization speed and home regionalization literatures. Using data from 767 publicly listed CMNEs from the years 2002 to 2014, we discover that the faster the intra-regional internationalization, the better the firm’s financial performance, whereas faster inter-regional internationalization demonstrates a poorer financial performance. We also find that fast-mover CMNEs’ technological and marketing resources are valuable in intra-regional host countries, but vulnerable in inter-regional host countries. We discuss the implications of these findings for studies of the Uppsala internationalization process model and regional MNEs.

Keywords

internationalization speed fast-mover (dis)advantages home regionalization financial performance Chinese multinational enterprises 

French

Notre étude révèle les conséquences en termes de performance financière de la vitesse à laquelle les entreprises multinationales chinoises (EMNC) se développent dans les pays hôtes intrarégionaux et interrégionaux. Ce faisant, nous proposons un cadre intégrant les littératures sur la vitesse d’internationalisation et la régionalisation d’origine. En utilisant les données de 767 EMNC cotées en bourse de 2002 à 2014, nous découvrons que plus l’internationalisation intrarégionale est rapide, meilleure est la performance financière de la firme, alors que l’internationalisation interrégionale rapide démontre une performance financière plus modeste. Nous constatons également que les ressources technologiques et marketing des EMNC très mobiles sont utiles dans les pays hôtes intrarégionaux, mais vulnérables dans les pays hôtes interrégionaux. Nous discutons des implications de ces résultats pour les études du modèle processuel d’internationalisation d’Uppsala et des EMN régionales.

Spanish

Nuestro estudio revela las repercusiones del desempeño financiero en la velocidad a la cual las empresas multinacionales chinas (CMNEs por sus iniciales en inglés) se expanden entre regiones versus entre países anfitriones de la misma región. Al hacerlo, proponemos un marco que integra las literaturas de velocidad de internacionalización y regionalización del origen. Usando datos de 767 las empresas multinacionales chinas que cotizan en bolsa de los años 2002 al 2014, descubrimos que cuanto más rápida sea la internacionalización intrarregional, menor es el desempeño financiero de la empresa, mientras que una internacionalización interregional demuestra un desempeño financiero más pobre. Encontramos también que los recursos tecnológicos y de mercadeo de rápido movimiento de las empresas multinacionales chinas son valiosos en países anfitriones de la misma región, pero son vulnerables en países anfitriones de otras regiones. Discutimos las implicaciones estos hallazgos para los estudios del modelo del proceso de internacionalización de Uppsala y las EMN regionales.

Portuguese

Nosso estudo revela as implicações no desempenho financeiro da velocidade com que as empresas multinacionais chinesas (CMNEs) se expandem para países anfitriões intraregionais versus inter-regionais. Ao fazê-lo, propomos um modelo que integra as literaturas sobre velocidade da internacionalização e regionalização doméstica. Usando dados de 767 CMNEs listadas de 2002 a 2014, descobrimos que quanto mais rápida a internacionalização intraregional, melhor o desempenho financeiro da empresa, enquanto a rápida internacionalização inter-regional apresenta um desempenho financeiro mais baixo. Também descobrimos que ágeis recursos tecnológicos e de marketing das CMNEs são valiosos nos países anfitriões intraregionais, mas vulneráveis nos países anfitriões inter-regionais. Discutimos as implicações dessas descobertas para estudos do modelo de processo de internacionalização de Uppsala e de MNEs regionais.

Chinese

我们的研究揭示了中国跨国企业 (CMNEs) 向区域内与区域间东道国扩张的速度对财务绩效的影响。我们就此提出了一个框架来整合国际化速度和本国区域化文献。使用2002至2014年间767家公开上市的CMNE的数据, 我们发现区域内国际化越快, 公司的财务业绩就越好; 而区域间国际化越快, 则财务业绩就越差。我们还发现, 快速行动的CMNEs的技术和市场营销资源在区域内的东道国里很有价值, 但在区域间的东道国里则很脆弱。我们讨论了这些发现对乌普萨拉国际化进程模型和区域跨国企业 (MNEs) 研究的意义。

Notes

ACKNOWLEDGEMENTS

We thank Area Editor Klaus Meyer and three anonymous reviewers for their insightful and constructive comments on earlier drafts. This research was supported by grants from National Natural Science Foundation of China (No. 71728003) and University of Macau MYRG (No. MYRG 2016-00207-FBA/MYRG2018-00171-FBA) to the second author.

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Authors and Affiliations

  • Heechun Kim
    • 1
    Email author
  • Jie Wu
    • 2
  • Douglas A. Schuler
    • 3
  • Robert E. Hoskisson
    • 3
  1. 1.Haskayne School of BusinessUniversity of CalgaryCalgaryCanada
  2. 2.Faculty of Business AdministrationUniversity of MacauTaipaMacau
  3. 3.Jesse H. Jones Graduate School of BusinessRice UniversityHoustonUSA

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